Aroa Venture Partners receives INR 40 Cr from SIDBI & UP Startup Fund

The VC firm has secured an investment commitment of INR 40 Cr (USD 4.8 Mn) from SIDBI under the Government of India Startup Fund of Funds and UP Startup Fund Schemes of the Government of Uttar Pradesh

Proceeds will go to healthcare, child development and care, insurance, financial services, deeptech and other sectors.

Founded in 2020 by Gaurav Gulati, Aroa Venture Partners is a venture capital firm with a multi-sector, multi-stage investment strategy. It focuses on early-stage companies across sectors

Investment firm Aroa Venture Partners, whose portfolio includes CRED, Unacademy and Urban Company, has raised an investment commitment of INR 40 Cr (USD 4.8 Mn) from Small Industries Development Bank of India (SIDBI) under the Fund of Funds for Startups scheme of the Government of India and the UP Startup Fund scheme of the Government of Uttar Pradesh.

The endorsement from two prominent government institutions reflects Aroa’s strong vision and strategic approach towards building a strong startup ecosystem in India, the company said in a statement.

Founded in 2020 by Gaurav Gulati, Aroa Venture Partners is a venture capital firm with a multi-sector, multi-stage investment strategy. It focuses on early-stage companies across sectors.

Aroa Opportunities Fund, a Category II AIF, has raised over INR 400 Cr in initial commitments from family offices and institutions with the final close targeted for March 2025 (FY25).

Gaurav Gulati, Founder and Managing Partner, Aroa Venture Partners, said, “With the demographic flywheel in full swing, we are keen to invest in groundbreaking ideas that will address the changing needs and aspirations of our country’s citizens in the coming decade and beyond.”

He added that the investment will help the VC firm support entrepreneurs who are developing innovative business ideas in sectors covered by Cradle-to-Care. Additionally, the proceeds will go towards healthcare, child development and care, insurance, financial services, deeptech and other sectors.

In line with this, the VC firm has hired Sekhar Puli as general and managing partner. Sekhar, who has nearly three decades of experience as a founder, entrepreneur, executive and investor, previously served on the operational advisory board at BV Investment Partners.

He co-founded REAN Cloud, acquired by Hitachi Vantara in 2018, and has played a key role in scaling companies and achieving successful exits including Rafter One, Flux7, and NUCON Aerospace.

Puli said, “The company’s mission to drive transformational growth in India’s rapidly evolving startup landscape resonates deeply with my own passion for empowering entrepreneurs. I look forward to working with this dynamic team to help shape the future of India’s next industry leaders.”

The development comes months after the VC firm reportedly launched a new fund aimed at venture capital INR 400 Cr (USD 50 million). Aroa Opportunities Fund, which was registered as a Category II Alternative Investment Fund (AIF) with the Securities and Exchange Board of India (SEBI) in October 2022, has raised seed commitments in excess of INR 400 Cr so far.